Personal service companies are limited companies set up by individuals to provide their professional services, typically used by contractors, consultants, and freelancers who work for clients rather than being directly employed. These companies allow you to operate through a corporate structure whilst maintaining control over your business activities, though they're subject to specific HMRC rules including IR35 regulations that determine whether you're genuinely in business or simply disguising employment.
While there isn’t a legal or formal definition of the term, personal service companies (PSC) refer to limited companies that are owned by a contractor, who is also the only shareholder and sole director. In some instances, the company may also be owned by a very small group of individuals.
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